Nasdaq, S&P 500 Score Back-to-Back Record Highs

-- The Nasdaq Composite and the S&P 500 reached new peaks Thursday amid growing hopes for a resolution to the Middle East conflict.

The Nasdaq rose 0.4% to 24,102.7, while the S&P 500 climbed 0.3% to 7,041.3, both notching record closing highs for a second consecutive day. The Nasdaq extended its winning streak to 12 days in a row.

The Dow Jones Industrial Average added 0.2% to 48,578.7.

Most sectors ended in the green, led by energy, while health care saw the biggest drop.

US President Donald Trump said Thursday that Lebanon and Israel agreed to a 10-day ceasefire.

Trump said in a social media post that he will invite Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun to the White House for "meaningful talks."

"Both sides want to see peace, and I believe that will happen, quickly," he wrote.

The ceasefire seeks to pause hostilities between Israel and Iran-backed Hezbollah in Lebanon, a key sticking point in peace negotiations between the US and Tehran.

West Texas Intermediate crude oil was up 2.4% at $93.50 a barrel in Thursday late-afternoon trade, while Brent advanced 3.4% to $98.19.

"Oil is up over doubts that the Strait of Hormuz disruption will ease soon," D.A. Davidson said in a report.

US Treasury yields were higher, with the 10-year rate up 2.6 basis points at 4.31% and the two-year rate rising 1.6 basis points to 3.79%.

In company news, IBM (IBM) shares rose 2.5%, the third-top gainer on the Dow. The tech giant will likely exceed Wall Street's estimates for the first quarter and raise its revenue guide amid momentum in the software segment and an earlier completion of the Confluent acquisition, Oppenheimer said in a note. IBM is scheduled to announce its quarterly results next week.

Charles Schwab (SCHW) shares dropped 7.6%, the steepest decline on the S&P 500. The financial services provider's first-quarter results rose year over year amid a surge in client assets, though revenue fell short of the Street's estimates.

Abbott Laboratories (ABT) followed Charles Schwab on the S&P 500, down 6%. The healthcare company lowered its full-year earnings outlook to reflect the acquisition of cancer diagnostics firm Exact Sciences.

PepsiCo (PEP) reported higher-than-expected fiscal first-quarter results amid affordability initiatives, while the beverage and snacks company reiterated its full-year outlook. Its shares rose 2.3%.

In economic news, US industrial production unexpectedly decreased in March, Federal Reserve data showed.

It's too soon to blame the Middle East conflict for the drop, which was driven by "sharply falling" output in the mining and utilities sectors, Oxford Economics said in a note.

Gold was last down 0.2% at $4,813.70 per troy ounce, while silver fell 1.2% to $78.68 per ounce.

GE Aerospace Strong Q1, Engine Fundamentals Seen Driving 2026 Upside Despite Oil Concerns, RBC Says

GE Aerospace (GE) strong Q1 earnings and solid "engine fundamentals" support potential upside to its 2026 outlook, despite investor concerns over oil prices and geopolitical risks that weighed on the stock, RBC Capital Markets said in a report emailed Wednesday.The company's strong performance was driven by "services growth" of 39%, supported by a 35% increase in internal shop visit revenue and more than 25% growth in spare parts, the firm said. LEAP engine deliveries rose 63%, reinforcing confidence in the company's 2026 growth outlook, according to the report.RBC said GE Aerospace maintained its 2026 guidance despite strong results, but the firm sees potential for a guidance raise in Q2, the report said.RBC maintained an outperform rating on GE Aerospace with a $355 price target.Price: $272.64, Change: $-14.09, Percent Change: -4.91%

$GE

McDonald's Seen Posting Largely In-Line First-Quarter Results, RBC Says

McDonald's (MCD) first-quarter results are likely to largely match Wall Street's expectations, with potential for downside given the company's exposure to low-income US consumers that are facing war-driven elevated energy prices, RBC Capital Markets said in a note e-mailed Wednesday.The fast-food giant is facing a "slightly unfavorable" setup heading into its latest quarterly results -- expected May 7 -- with higher fuel prices expected impact the spending of lower-income US consumers, an important segment that the company "over-indexes" to, RBC analyst Logan Reich said in a note to clients."Given their relative exposure to lower-income consumer in the US, which appears to be facing increasing macro headwinds, the set up skews slightly unfavorable heading into the print," Reich wrote. "We look for any commentary on impact from Middle East conflict, which is likely only a slight directional headwind in (the first quarter) and into (the second quarter)."Energy prices have soared in the wake of the US-Israel war with Iran that started at the end of February, curtailing shipments through the crucial Strait of Hormuz. On Tuesday, US President Donald Trump announced an extension of a recent ceasefire deal with Iran.RBC expects McDonald's to report first-quarter earnings of $2.76 a share on revenue of $6.43 billion. The Street is looking for $2.75 and $6.48 billion, respectively, according to the note. The brokerage pegs consolidated comparable sales growth at 4.1% versus the Street's expectations for a 3.9% increase. In the US, RBC expects same-store sales to rise 4.5%, compared with the Street's 4.2% growth view.Earlier this month, a survey by the University of Michigan showed that consumer sentiment hit the lowest on record in April, reflecting heightened worries about higher prices and the overall economic fallout from the Middle East conflict.McDonald's is making incremental adjustments to its value offerings with the aim of boosting traffic and improving consumer perceptions, according to RBC. However, additional value offerings could "cannibalize" its core menu and offset any incremental traffic benefit, Reich said.Earlier in April, the company announced it will introduce an under $3 menu and a $4 breakfast meal deal at participating restaurants in the US, starting April 21.Price: $301.36, Change: $-0.48, Percent Change: -0.16%

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Nasdaq, S&P 500 Score Back-to-Back Record Highs

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